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Operational Highlights
New Programs
Now on its 26th year of providing affordable and accessible credit to the
country's farmers, fisherfolk and small entrepreneurs, the Quedan and
Rural Credit Guarantee Corporation has generated over P32 billion worth of
credit to more than four million beneficiaries nationwide.
Cognizant of the significance of rural finance in nation-building,
QUEDANCOR introduced 26 new credit programs for the year 2003. These
programs are not only aimed at improving the production and quality of
certain commodities in the agriculture sector, but also in providing
livelihood opportunities for people, such as in the formation of new jobs
that will enable stimulation of production essential for the country's
growth and progress.
In line with the government's thrust to promote sustainable development in
the agriculture sector particularly in the countryside, QUEDANCOR is
currently crafting programs for other commodities which have the potential
to enhance the Philippine agriculture sector especially in re-establishing
its image as one of the leaders in the export of agriculture products in
the South East Asia region.
New programs launched in 2003 include the following:
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QUEDANCOR Program for Small
Sugar Farm Holders/ Workers (QUEDANCOR- SFWH)
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QUEDANCOR Corn Logistical
Competitiveness Program
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Credit and Entrepreneurship
Assistance Program for Agricultural Engineers, Agricultural
Engineering Students and Organizations
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QUEDANCOR- Philippine
Business for Social Progress Program on Income Augmentation
Livelihood for the Urban and Rural Poor (QUEDANCOR-PBSP-IAL-URP)
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GMA-CARES for Sugar Farmers
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QUEDANCOR Marketing Credit
for Agri-Fishery Products
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QUEDANCOR- LIVECOR Agri-Aqua
Equipment Leasing Program
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QUEDANCOR Production and
Marketing Credit for Oolong Tea
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QUEDANCOR Wholesale Lending
for Cooperative Rural Banks (QUEDANCOR-WLCRB)
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QUEDANCOR Guarantee Program
for Inventory Financing for Farmer-Groups (QUEDANCOR-GPIF-FPG's)
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QUEDANCOR Farmer's Trust
System (QUEDANCOR-FTS)
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Ginintuang Masaganang Ani-
Countryside Assistance for Rural Employment and Services Program for
Income Augmentation and Livelihood for the Self-Reliant Farmers/
Fisherfolk (GMA-CARES-IAL-SRF)
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QUEDANCOR Financing Program
for Countryside Lending Conduits (QUEDANCOR-CLC)
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QUEDANCOR-Allied Bank Agri-
Aqua Financing Program
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Agro- Industry
Modernization Credit and Financing Program (AMCFP) for Countryside
Lending Conduits
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QUEDANCOR- PCA Small
Coconut Farmers Livelihood Program (SCF-LP)
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QUEDANCOR Program for
Tomato Farmers
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QUEDANCOR Program for
Export Packing Credit Facility
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QUEDANCOR Program for
Pineapple Growers
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QUEDANCOR Special Program
for Food Retailers and Wholesalers
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QUEDANCOR Corn
Rehabilitation Program
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GMA-CARES Program for
Upland Farmers
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QUEDANCOR Rice Program for
Farmer-Members of Irrigators Associations (IAs)
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Palay Negotiable Warehouse
Receipt Program (PNWRP)
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QUEDANCOR Financing Program
for Working Capital of Buyers and Processors of Agri-Fishery
Commodities
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QUEDANCOR Young Farmers
Program
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Credit Intervention in
Key Commodities and Sectors
The Department of Agriculture under the stewardship of Secretary Luis P.
Lorenzo, Jr. has identified 13 priority commodities. These include rice,
corn, livestock, coconut, sugar, fisheries, mango, banana, papaya,
calamansi, vegetables, durian and coffee.
With this, the department and its attached agencies including QUEDANCOR
are focusing their resources to identify and support commodities with
achievable potential for increased farmers productivity and incomes,
employment generation, attainment of food security and increased exports.
Mandated to provide affordable and accessible credit in order to enhance
the production of key agricultural products, QUEDANCOR has established
programs to provide financing for the following commodities:
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Financing program
for Rice
To help achieve self-sufficiency, QUEDANCOR has programs designed for rice
farmers:
1. GMA- CARES Hybrid Rice Seed Cultivation
Project
2. GMA- CARES Inbred Rice Seed Production Program
 The
GMA-CARES Hybrid Rice Seed Cultivation Project is aimed at promoting the
use of modern varieties or hybrid seeds. With assistance from QUEDANCOR,
it aims to encourage farmers avail of an innovative collateral-free loan
package, the Self-Reliant Team (SRT) model.
As of 2003, the Hybrid Rice Seed Cultivation Project has already released
P44.28 M to 11,620 farmers. This has increased total releases under the
program to P73.76 M to 22,300 beneficiaries nationwide.
On the other hand, the Inbred Rice Seed Production Program aims to promote
and intensify inbred rice seed technology in rainfed and irrigated areas
thru innovative financing schemes designed for the rice farmer.
For this program, the Corporation generated P166.85 M worth of loans to
44,740 beneficiaries. Over-all, the cumulative loan generation of the
program stood at P194.75 M for 52,160 beneficiaries since the program was
implemented in 2002.
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Financing Programs for Corn
Underscoring the importance of corn, QUEDANCOR designed two credit
programs for the sector: the Hybrid Corn Production Program and the Corn
Logistical Competitiveness Program.
 Hybrid
Corn Production Program
This program provides loans for working capital, marketing, production,
livelihood and other farm-related projects of corn farmers and their
families. It utilizes the Self-Reliant Team Model.
Since its implementation in 2002, QUEDANCOR has released a total of
P343.06 M, of which P87.94 M was recorded for 2002 and P255.13 M for 2003.
This amount benefited 82,932 farmers, broken down as follows: 24,044 for
2002 and 58,888 in 2003.
Region 10 had the biggest loan generation for the program in 2003 with
P55.01 M. This accounts for the fact that the region has one of the
largest areas of corn plantation covering 231,310 hectares.
Isabela province, meanwhile generated loans amounting to P36.75 million.
Corn Logistical Competitiveness Program
This program aims to increase production of quality corn in identified
priority areas in Mindanao and provide accessible technical, marketing and
credit facilities to make the corn industry more competitive in the farm
and mill levels.
The program financed 35,000 hectares of corn farmland in the provinces of
Bukidnon, Misamis Oriental, South Cotabato, Sultan Kudarat, Lanao del Sur
and other provinces.
Beneficiaries include millers/processors/ producers and other entities,
except farmers' cooperatives/federation, engaged in corn processing,
milling and other corn-related production activities.
Since its implementation in 2003, the Corn Logistical Competitiveness
program has released P23.69 M worth of loans. This amount was distributed
to 11 principal borrowers who in turn, re-distributed the loans to 753
beneficiaries.
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Financing Programs for Aqua-Culture
 Realizing
the importance of marine resources, QUEDANCOR implements numerous programs
to stimulate production and preserve the bounties of the sea.
One is the QUEDANCOR program for Agri-Aqua Inventory Management (AIM).
This program is aimed at developing a dynamic market that hastens the
procurement, processing and distribution of agri-fishery commodities. To
be eligible, prospective borrowers must be accredited by QUEDANCOR. They
must also be a holder in due course of QUEDANCOR prescribed negotiable
instruments such as warehouse receipts or Sugar Regulatory Administration
prescribed quedans covering sugar.
In 2003, P281,95 M worth of loans was released under AIM to 19,667
beneficiaries. This has increased the aggregate total loan releases under
the program to P21,52 B benefitting over P8.4 million individuals.
There is also the program for Livelihood and Aquamarine Productivity
(LAMP). This is designed to assist coastal fishermen establish alternative
livelihood projects, develop more aquaculture projects and entice
financial institutions to provide credit support to the fisheries sector.
This program finances livelihood projects of fishermen, their family,
cooperatives or bonafide residents in DA-Fisheries Sector Program priority
bay areas and/or aquaculture projects of sole proprietors, cooperatives,
partnerships and corporations within DA-FSP priority regions.
For 2003, LAMP has produced 2,161 beneficiaries by releasing P 33.74 M, a
marked improvement since the program was not able to generate any loan
release for 2002.
In addition, there is the Fisherfolk Integrated Livelihood Program (FILP).
This program provides start-up or working capital for existing projects of
small fisherfolk, fishpond operators, their immediate family members and
fishermen cooperatives.
FILP has released P 378,000 for 2003, producing 322 beneficiaries. This is
a slight dip compared to the P 1 million worth of loans for 2002
benefiting 560 fishermen and fish pond operators. Since its implementation
in 1997, the FILP program now has a total of P51.285 million loans
generated benefiting 53,325 fisherfolk and entrepreneurs engaged in
aqua-marine businesses.
To help the industry address the growing clamor for seaweeds in the
international market, QUEDANCOR has set up the QUEDANCOR Seaweed and Fish
Culture Program (GMA CARES-SFCP).
The program provides credit to clients engaged or will engage in seaweed
and fish culture and in the production, processing, manufacturing and
trading of fish, seaweed and other aquatic products. Other agri-based
projects of said clients will also be funded.
During its launch in 2001, the Seaweed and Fish Culture Program (SFCP) was
able to release P11.4 million worth of loans that benefited 8 seaweed
farmer-groups and entrepreneurs engaged in aqua-marine commodities.
For the next two years (2002 and 2003), SFCP funneled P14.4 M worth of
loans to 84 beneficiaries.
Lastly, the GMA-CARES Fisheries program provided P16.42 M working capital
to 432 fishers.
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Financing Program for Livestock and
Poultry
 To
address the capital requirements of this sector, QUEDANCOR has implemented
the Ginintuang Masaganang Ani-Countrywide Assistance for Rural Employment
and Services for Livestock and Poultry (GMA CARES-LIVESTOCK & POULTRY).
This program aims to improve income position of small poultry and
livestock raisers and their cooperatives and associations by provision of
direct credit to clients who are engaged or planning to engage in such
related projects. For 2003 QUEDANCOR released P118.38 M to 2,219 poultry
and livestock program beneficiaries nationwide. The amount more than
tripled from P50.93 M for 79 beneficiaries in 2002.
Total loan releases under the program amounted to P172, 420 M for 2,303
beneficiaries since the program started in 2001.
With regard to revitalizing the dairy industry, QUEDANCOR implemented the
Ginintuang Masaganang Ani-Countrywide Assistance for Rural Employment and
Services for Philippine Dairy (GMA CARES-DAIRY) program.
The dairy program has released P10.13 M to 52 beneficiaries. This amount
is a big jump from the P0.635 M released in the previous year. Over-all,
the aggregate loan releases for the Dairy Program reached P13,107 M loaned
out to 69 beneficiaries.
Another form of indirect assistance given to the livestock industry is the
GMA-CARES program for corn (please see details in corn section of this
report). Since corn is the prime ingredient for the production of feeds,
it is necessary that such a program be implemented to augment the over-all
supply of corn and corn-related products in the country.
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Financing Program
for Sugar
 In
line with the programs and projects of the Department of Agriculture and
the Sugar Regulatory Administration, QUEDANCOR has designed in 2003 the
GMA-CARES Program for Sugar Farmers to provide financial assistance to the
country's marginalized sugarcane farmers.
2003 proved to be a promising year for the said program as it released
loans amounting to P 225,000 to 11 beneficiaries. Based on this initial
success, it is expected that the Sugar Program will be able to increase
loan generation for the years to come that will greatly help develop the
local sugar industry.
Meanwhile, the GMA-CARES Sugar Farm Modernization Program released P6.61 M
for the purchase of farming machineries and equipment of seven sugar
farmer-beneficiaries.
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Financing Program for Coconut
 Helping
revitalize the coconut industry, QUEDANCOR has set up various programs to
help farmers increase coconut and copra production. For one, the QUEDANCOR
Oil Palm Program under the Self-Reliant Team (SRT) model aims to help
beneficiaries develop hectares of land suitable for oil palm farming and
in the process attain self-sufficiency by 2010. Likewise, the Ginintuang
Masaganang Ani-Countrywide Assistance for Rural Employment and Services
For Coconut Smallholders (GMA-CARES-COCONUT) will assist coconut farm
owners in harnessing their land for maximum coconut production, as well as
benefit small coco farmers achieve optimum income.
Although a relatively young program which just started in 2003, the
QUEDANCOR Oil Palm Program has already released a cumulative amount of
P419,504 worth of loans to 110 beneficiaries in regions 10 and CARAGA.
On the other hand, the GMA-CARES Coconut Program infused P1.5 million
worth of credit for 2003 to seven coconut cooperatives. This is a 252%
jump over the previous year's loan generation of P 425,000.
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Financing Program for Coffee
 To
help rejuvinate and develop the coffee industry, QUEDANCOR takes an
important role in the government’s task to rehabilitate the coffee sector.
A P1.68 B fund requirement has been identified by government with which
P400 M is allocated for credit facility. The agenda covers two important
activities: a) rehabilitation and replanting , and b) new planting with
projected production of 44,733 MT of coffee by 2005 and 128,000 MT by year
2009. QUEDANCOR participates in this agenda thru its Coffee Rehabilitation
and Development lending program.
For 2003, the QUEDANCOR Coffee Rehabilitation Program released P7.46 M to
32 coffee farmers and growers. This is over and above the P12.59 M
released the previous year.
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High Value Crops
 Banana
In an effort to sustain the banana industry's
successful production, QUEDANCOR released P1.38 M loan assistance to 310
banana farmers nationwide. Currently, QUEDANCOR is developing programs
that will help enhance the quality of banana produce in the local scene
through introduction of new marketing initiatives and reduction of
post-harvest losses enabling Philippine-grown banana and banana-based
products such as chips to expand its market globally, specifically
penetrating the markets of Australia, United States and Taiwan.
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Mango
 Recognizing
the marketing strength of mango, QUEDANCOR created a financing program for
mangoes aimed at providing financial assistance to mango farmers and
growers to be used as start-up capital, land preparation, cultivation and
maintenance of mango orchards.
For 2003, QUEDANCOR released P1.45 M for 206 mango grower-beneficiaries.
This figure is expected to be higher in the coming years as QUEDANCOR
expands its program area coverage to more mango-producing regions.
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Regional Lending Performance
In its continuing effort to develop and enhance the agriculture sector.
QUEDANCOR has intensified its loan generation campaign nationwide to
benefit the country's marginalized agricultural workers who in turn used
the amount as capital for their respective businesses.
The year 2003 witnessed QUEDANCOR releasing P2.9 billion worth of loans
under its credit and guarantee programs. This figure is an 86.62% jump
from the previous year's loan releases of P1.6 billion.
This has also resulted in the increase in the number of beneficiaries of
the Corporation. From 169,759 borrowers in 2002, the number has jumped to
580,000 in 2003.
The following table shows the amount of loans released broken down per
region:
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Corporate Updates
Establisment of
New Offices
Year 2003 saw QUEDANCOR successfully open 18 new district offices (DOs) as
well as six extension offices in different parts of the country. This
placed the over-all number of QUEDANCOR District Offices to 63 nationwide.
The DOs are the Corporation's direct link to the grassroot levels whether
they be in urban or rural areas. It is at the DO level where clients
constantly walk in and inquire about the programs, undergo seminars,
submit loan requirements, and await for the timely release of approved
loans. These offices are QUEDANCOR's operation hubs scattered over the
length and breadth of the archipelago.
Through the expansion of the Corporation’s area operation, QUEDANCOR will
be able to provide better credit services to a bigger number of clientele
from different provinces and municipalities.
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Fund Sources
As a firm advocate of developing rural financing in the Philippines,
QUEDANCOR has sought and formed alliances with banks and other financial
institutions in order to heighten necessary credit assistance for various
livelihood projects and businesses especially those in the countryside.
In 2003, QUEDANCOR was able to forge agreements with partner banks such as
Land Bank of the Philippines (LBP), Philippine Veterans Bank (PVB), United
Coconut Planters Bank (UCPB) and Allied Bank.
QUEDANCOR has successfully negotiated rediscounting facilities with Land
Bank and Allied Bank, amounting to P800M and P150M, respectively.
To further enhance the generation of loan funds, QUEDANCOR introduced the
selling of promissory notes. This step proved to be a successful one for
the Corporation, as it was able to secure such arrangement amounting to
P1.05 billion coming from three of the country's biggest banks: Land Bank
of the Philippines, which provided a P400 M rediscounting facility,
Philippine Veterans Bank with P150 M and United Coconut Planters Bank at
P500 M.
All in all, these figures have accounted for QUEDANCOR's current credit
line facility a hefty P2 billion available fund source for the various
credit and lending programs of the corporation.
Working hand in hand with QUEDANCOR, these financial institutions are
crucial partners responsible in bringing accessible credit to the most
number of people particularly those located in far-flung areas.
In order to further expand the areas of coverage of its financing
programs, QUEDANCOR is planning to forge more alliances with partner-banks
and other related lending entities. This is in consonance with its
corporate vision to improve credit and lending programs to benefit more
marginalized farmers, fisherfolk and small entrepreneurs.
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Loan Collection
It was during the first quarter of the year when, in order to strengthen
the collection arm of the corporation, the Governing Board authorized the
creation of the Credit and Remedial Management Department or CRMD. The new
office is primarily tasked to improve the billing system and fast track
collection efforts, as well as to institutionalize plausible remedial
measures and asset management program.
The creation of the department, as envisioned, had remarkable impact
relative to collection and other related activities. Total amount approved
for remedial action is registered at P157.09 M covering 1107 delinquent
accounts. The success of the new remedial measures adopted by the CRMD
netted total recoveries of P177.11 M for the year. This figure is broken
down as follows: P89.91 M recoveries from accounts in arrears; P77.72 M
from past due accounts; and P9.48 M from the monetization of foreclosed
properties. The achievements of the CRMD brought the total Corporate
collection recoveries to P1.25 B.
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Financial Highlights
Despite the influx of agriculture-related problems
brought about by the inclement weather and the rise in crop and livestock
diseases, QUEDANCOR was able to carry-out its functions and corporate
operations effectively and efficiently.
At the same time, the corporation was able to present a significant
increase in its net income, although not receiving a single peso from the
national budget, by registering P39.8 M by yearend of 2003. This is a 92%
growth rate from the previous year’s net income of P20.7 M. This increase
is mainly the result of the corporation’s earnings from its lending
operations.
Because of the positive growth that affected all sources of revenue such
as guarantee fees and investments, gross revenue also posted gains
amounting to P509.15 M or a 64% growth rate over the P310.06 M registered
during the same period last year.
With the on-going establishment and creation of additional offices and
manpower encompassing QUEDANCOR's area expansion, total corporate expenses
went up to P469.3 M, an increase of P180 M or 62% over the 2002 figure of
P289.3 M.
Total corporate assets on the other hand reached P6.09 billion, higher by
P1.79 B or 42% more than last year's amount of P4.3 B. Of this figure
7.04% was sourced out from stockholders’ equity while 92.96% came from
borrowings and trust liabilities.
Aggregate stockholders’ equity amounted to P866.69 M, an improvement of
11% or P85 M as compared to last year's sum of P781.78 M. From this
amount, 10.72% or P92.9 M came in the form of retained earnings.
2003 was a fruitful and fulfilling year for the agriculture sector as it
posted significant figures in terms of growth and production. Riding on
the crest of these achievements is QUEDANCOR, producing noteworthy gains
and improvements which resulted in its considerable contribution to the
growth of the agriculture sector.
QUEDANCOR, energized by the strong backing of its partner-banks, is
expected to overshadow the figures and highlights it made in 2003 thru the
creation of additional financing packages and credit programs that seek to
expand its funding of certain agri-commodities. This will also create
opportunities for local agriculture workers to showcase and harness their
skills thru these particular programs.
As one of the pillars in promoting and intensifying the flow of credit to
the countryside, QUEDANCOR will seek the cooperation of additional
financial institutions as well as other similar agencies for 2004, which
will enable sustainability of investments to the countryside.
Also, QUEDANCOR plans to set up additional Regional and District Offices
in various parts of the country aimed at delivering its credit services to
the remotest areas. It will also generate employment in accordance with
the national leadership's aim of economic growth and progress.
Having released more than P30 billion worth of loans for the past 26
years, QUEDANCOR envisions being a major player in rallying the
agriculture sector towards sustainable development for the years to come.
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